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Cineworld Share Price Logged Fresh Multi-Month Lows Today. Here’s Why

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Updated: 07 August 2020

Shares of Cineworld Group PLC (LON: CINE) broke below horizontal support near 35p to trade over 12% in the red on the week. The price is now on its way to close lower for the third week in a row as the cinema industry takes a battering amid the pandemic and social distancing measures. 

The latest hit to Cineworld comes from Disney after the US-based giant decided that the live-action version of the much-anticipated “Mulan” drama will skip most of the world's movie theaters. Instead, the drama will go directly to the Disney+ streaming service in the U.SCanada, Australia, and some countries in Western Europe.

Interested viewers will be required to pay $29.99 to watch Mulan, with costs to produce a movie that has been reported at $200 million. 

Earlier this week, Cineworld share price took a severe hit on reports that AMC Entertainment and Universal Pictures reached an agreement to cut films’ run times in theatres.

Cineworld share price plunged as Disney+ set to skip theaters for screening of its Mulan drama August 2020

Cineworld share price is trading below 34p again, the lowest levels since March.